Digital Payments for Financial Inclusion of vulnerable groups in Argentina: an empirical study on merchants in the neighborhood Padre Carlos Mugica (ex Villa 31-31 bis) of the Ciudad Autónoma de Buenos Aires
DOI:
https://doi.org/10.24215/18521649e017Keywords:
Financial inclusion, digital payments, Fintech, urban settlements, povertyAbstract
This paper addresses the problem of digital payments and financial inclusion in informal settlement merchants. To this end, an unprecedented quantitative survey was developed and 104 merchants from the Padre Carlos Múgica Neighborhood (ex Villa 31 and 31 bis) in the City of Buenos Aires, Argentina, were interviewed. Our findings claim the enormous potential to include financially through digital payments. Mobile is highlighted as the main sources of access to the digital world, but also highlight the lack of security and trust in this technology. Our result shows a multiplier effect on businesses that accept digital payments in relation to other dimensions of financial inclusion and provides information on what are the main incentives that low-income merchants receive to adopt or be interested in starting to accept digital payments in their businesses.
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